Camber Energy Inc (NYSEAMERICAN: CEI) is having an incredibly strong start to the trading session this morning, and for good reason. The interim CEO of the company issued a letter to shareholders, reminding investors of accomplishment and the work the company continues to do to return value. Of course, the news excited investors, pushing the stock on a run for the top. Today, we’ll talk about:
- The letter from the CEO;
- what we’re seeing from CEI stock as a result; and
- what we’ll be watching for ahead.
CEI Issues Letter From CEO
As mentioned above, Camber Energy is having a strong start to the trading session this morning after the CEO of the company issued a letter to shareholders. In the letter, Louis G. Schott, interim CEO at CEI pointed to several accomplishments. Some of the key accomplishments mentioned in the note include:
- IBC Debt Extinguishment – In a transaction in 2018, Camber Energy announced the divestiture of its Oklahoma assets, which were sold to N&B Energy, LLC. Through the sale of the assets, N&B assumed all of Camber’s debt with IBC. Through the transaction, CAmber retained its assets in Glasscock County and Hutchinson County, Texas as well as production payment and overriding royalty interest on the Okemah assets and an overriding royalty interest on certain undeveloped leasehold interests. This transaction got rid of $26.9 million in debt and monthly service payments of $425,000 per month.
- Stockholder’s Deficit To Equity – Another key factor here was that the company has been in danger of being delisted from the NYSE as a result of stockholders’ equity issues. The NYSE requires that the company maintain stockholder equity in the amount of $6 million to maintain listing, however, entering into 2018, the company had a deficit of more than $20 million. This was remedied throughout the year as CEI brought stockholders’ equity up to about $8 million as of December 4, 2018. As a result, should this shareholders’ equity be maintained, the company will regain compliance with NYSE listing requirements in February of this year.
- Balance Sheet – Through the extinguishment of debt with IBC, the company greatly cleaned up its balance sheet, setting the stage to grow from a strong financial foundation throughout 2019.
In the letter, Mr. Schott provided the following conclusion:
Overall, the Company accomplished several major milestones in 2018. Extinguishing the bank debt, cleaning up the balance sheet, and hopefully becoming fully compliant with the NYSE are all major steps towards the future.
As we move into calendar 2019, the Company continues to seek out both large and small acquisitions as well as merger opportunities with the goal of increasing shareholder value.
The Board of Directors and the Executive Management Team want to thank our loyal shareholders for their continued encouragement, and want to share our excitement about this year and the Company’s future.
/s/ Louis G. Schott
What We’re Seeing From The Stock
One of the first lessons that we learn when we star to work in the market is that the news leads to moves. When it comes to Camber Energy, the news proved to be overwhelmingly positive. After all, the company’s work throughout 2018 has set the stage for a strong year ahead as we enter 2019. So, it’s not surprising to see that excited investors are pushing the stock on a run for the top. As is normaly the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (9:06), CEI is trading at $1.36 per share after a gain of $0.15 per share or 12.40% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the iWatch Markets team will continue to keep a close eye on CEI. In particular, we’re interested in following the story surrounding the company’s work to take advantage of the strong movements in 2018 and push for further growth in 2019. Nonetheless, we’ll keep a close eye on the story and bring it to you as it breaks.
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